Paul Mueller Co. (OTC: MUEL) called off the sale of one of its subsidiaries less than a month after signing a letter of intent.
The Springfield-based stainless steel manufacturer on Dec. 30 reached a mutual agreement with the management of Mueller Field Operations Inc. to terminate the Dec. 11-dated letter of intent, according to a news release.
“After reaching a letter of intent with MFO’s management team which provided both of us new opportunities, we worked through the holidays on the details of a final agreement," Mueller Co. President and CEO David Moore said in an emailed statement. "While working through this complicated process, we finally agreed that it was in all of our interests for the companies to continue supporting one another in the current structure.”
The deal had been tentatively valued at $6.6 million.
Jeremy Rogles, president and general manager of MFO, was among the management of the company seeking to buy it. He's staying on board in the same role, said Mueller Co. spokesperson Christine Daues.
Additionally, MFO’s plans to find a new local home after the acquisition have been rescinded, Daues said. The subsidiary operates at the Mueller Co. headquarters at the intersection of Chestnut and Kansas expressways.
For the 12 months ended Sept. 30, MFO posted $27.6 million in revenue, according to past reporting. The subsidiary was organized in 1998 to provide on-site tank fabrication and other field-installed equipment.
Mueller Co. reported third quarter net income of nearly $4 million and revenue of $51.6 million.
The company's over-the-counter stock traded as high as $33.20 per share on Dec. 30, compared with a 52-week range of $18 to $34.
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